When capital adequacy line is equal to the savings per worker function then "normal expected returns to investor".
<h3>What is
capital adequacy/requirement ratio?</h3>
The capital adequacy ratio (CAR) gauges a bank's level of capital retention in relation to its level of risk. The CAR of banks must be monitored by national regulators in order to ascertain how well it can withstand an acceptable amount of loss.
The components of capital adequacy are-
- The Capital Adequacy Ratio (CAR) aims to ensure that banks have an adequate amount of capital to safeguard depositors' funds.
- (Tier 1 Capital + Tier 2 Capital) / Risk-Weighted Assets is the calculation for CAR.
- The BIS's capital standards have tightened up in recent years.
- By reducing the likelihood of bank insolvency, capital adequacy ratios promote the effectiveness and stability of a country's financial system.
- A bank with a high capital adequacy ratio is typically thought to be secure and likely to fulfill its financial obligations.
The principle of capital adequacy are-
- High-quality and loss-absorbing capital are both necessary.
- The Basel III criteria for common stock, along with supplementary tier 1 and tier 2 capital, are applied to establish the quality of capital, with retained earnings being the most important factor.
To know more about the capital requirement, here
brainly.com/question/13676980
#SPJ4
The governor is the chief executive of the state true or false = True
<span>ethics seeks an account of how and why people should act a certain way, rather than how they do act. this nature of ethics makes it a(n) normative discipline.</span>
Answer:
Americans have different ideals of what is valuable for a better life.
Answer:
Dr. Greenway- behavioral perspective; Dr. Cech- cognitive perspective
Explanation:
Behavioral perspective- This is a theoretical perspective through which behavior and learning are described in terms of stimulus-response (SR) relationships. According to behaviorists, a person's behavior is a result of the interaction with the given environment. There are two processes through which people learn and develop skills from their environments: Operant conditioning and Classical conditioning.
Cognitive perspective- This involves the understanding of mental processes, for example, perception, memory, problem-solving, and thinking. It states that our thought processes influence the way we behave.